Trump's Threat to Mexico auto industry
After a 20 year boom, the future of the Mexican Auto industry is suddenly uncertain after a week in which sector was thrown into disarray by the US president-elect, threatening thousands of jobs.
In a string of tweets, Donald Trump bullied car companies for operating in Mexico and putting them under tax pressure to shift production to the US.
On Tuesday, Trump threatened General Motors with a “ border tax” on vehicles imported from Mexico to the US. A day later, Ford announced it had cancelled plans to build a $1.6 billion plant in Mexico and instead it would expand a facility in Michigan. Two days later, Trump threatened Toyota if it continued with plans to open a new plant in Tijuana and Guanajuato.
The looming Trump administration has already sent the Mexican peso plunging to record lows and threatens to unravel commercial ties so close that more than $1m of merchandise crosses the Mexico-US border every minute, reports The Guardian. His threats could not have come at a worse time for Mexico as the country confronts stalling economic growth and a spate of violent protests over an increase in the government-set gasoline price.
As reported in The Guardian.